IR35 Conservative Backbench Revolt
Up to 50 MPs are expected to join an IR35 Conservative backbench revolt over new IR35 taxation for contractors. David Davies is masterminding the revolt. He told the Daily Mail ‘Threatening to raise the taxes of the hardworking self-employed is wrong.’
Questions on IR35 Conservative backbench revolt
- Why are the self employed vital to the economy?
- So, why does the Government keep taxing contractors?
- Why is this IR35 Conservative backbench revolt good for contractors?
- How can contractors make use of this IR35 Conservative Backbench revolt?
Why are the self employed vital to the economy
David Davies said these entrepreneurs would be vital to kick start the economy once this coronavirus crisis ends.
He welcomed the relief for the self employed but said ‘This is not some kind of quid pro quo between the self-employed and the Government.
“Subsidising all parts of the economy while expecting increased repayment from a single sector is not fair.’
David Davies said that many of the self employed would struggle to survive this crisis.
Why does the Government keep taxing contractors
He sad ‘Paying for that relief in higher taxes will be the final straw for many. The Treasury has a long history of seeking to raise taxes from those who can least resist, whilst allowing sweetheart deals to the big corporates. This is not the time to exacerbate that habit.’
Chancellor Rishi Sunak hinted that the self employed would lose their tax perks in return for this subsidy of £2,500 a month.
However, personal services company contractors are not getting any subsidy and you can bet your bottom dollar that they will be hit by any tax hike.
Why is this IR35 Conservative backbench revolt good for contractors
However, this IR35 Conservative backbench revolt is great news for contractors. The size of the revolt is big enough for the Government to lose the vote. Their overall majority is 80. So, if all the other parties voted against, the rebels would still win the vote easily. If all other parties voted against the Government, it would lose by 20 votes.
However, the Ulster Unionist DUP would probably vote for the Government with their 8 MPs.
There would also be intense efforts by the Government whips to get this number down from 50 to a more manageable level.
However, this does point the way as to how contractors can get the IR35 changes stopped and any future taxes they are planning for contractors.
David Davies is highly respected in the Conservative Party among backbenchers. So, this is a serious revolt. However, as it stands, those in revolt would be likely to lose the vote once the Government Whips have been in action.
How can contractors make use of this IR35 Conservative Backbench revolt
Contractors would need to maybe increase the number of MPs who would vote against the bill as some are sure to peel off under pressure.
However, that is not impossible. The way forward is for as many contractors as possible to contact their local MPs and get an assurance from them that they will vote against any tax increases or al least abstain.
IPSE should be involved in this. They can organize their members in all 650 constituencies to arrange meetings with their local MPs and for as many freelancers to go along to those as possible.
You know, suddenly, there is a pathway to getting the IR35 changes, or any new taxes on contractors, stopped.
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